May 16th, 2013


Related Attorneys

The Ten Commandments Of Crowdfunding

Forbes recently published “The Ten Commandments of Crowdfunding” by Bryan Sullivan and Stephen Ma.

With the success of the Veronica Mars and Garden State-sequel Kickstarter campaigns, it appears that the crowdfunding business model has made its way to mainstream Hollywood. While crowdfunding certainly has advantages, including giving filmmakers more creative control over their projects, this business model is open to potential claims of fraud, misappropriation, conversion and embezzlement, which lead to the risk of financial exposure in the form of adverse judgments and the cost of litigation, and can potentially stop the project. In order to minimize risk, people using the crowdfunding business model should first consult an attorney, and follow what Sullivan & Ma have coined as the “Ten Commandments of Crowdfunding.”

Read the full article here.